First Western Financial Reports 68% Increase in Net Income for Q1 2025

First Western Financial, Inc. reported a significant increase in its financial performance for the first quarter of 2025, with net income available to common shareholders rising to $4.2 million, a 68% increase from $2.5 million in the same period last year. The company's income before income taxes also saw a 50% increase, reaching $5.4 million, driven primarily by a $1.4 million rise in net interest income, which totaled $17.5 million for the quarter. This increase was attributed to a decrease in total interest expense, which fell by 10.2% due to lower average interest rates on deposits, despite a slight decline in average loans outstanding.

In terms of operational metrics, First Western's total assets decreased slightly to $2.91 billion as of March 31, 2025, down from $2.92 billion at the end of 2024. The company experienced a notable reduction in its mortgage loans held for sale, which dropped by 58.5% to $10.6 million, reflecting lower origination volumes. Additionally, the company sold two other real estate owned (OREO) properties, resulting in a net gain of $0.5 million, which contributed to the overall decrease in OREO assets from $35.9 million to $4.4 million.

First Western's loan portfolio remained stable, with total loans held for investment at $2.42 billion, virtually unchanged from the previous quarter. The allowance for credit losses decreased slightly to $17.96 million, reflecting a proactive approach to credit risk management. The company reported no loans more than 90 days delinquent and maintained a strong allowance for credit losses relative to non-accrual loans, which stood at 140.82% as of March 31, 2025.

Strategically, First Western continues to focus on its wealth management services, targeting high-net-worth individuals and their related organizations across several states, including Colorado, Arizona, and California. The company has expanded its footprint to 14 full-service profit centers and remains committed to maintaining a conservative credit appetite, particularly in the commercial real estate sector, which has faced challenges due to changing work environments. Looking ahead, First Western anticipates continued stability in its operations, supported by a diversified client base and a strong capital position, with total shareholders' equity increasing to $256.6 million as of March 31, 2025.